factual

What is the purpose of the Bens Soft Pretzels Franchise Agreement referenced in the sublease?

Bens_Soft_Pretzels Franchise · 2025 FDD

Answer from 2025 FDD Document

THIS SUBLEASE is made and entered into as of this day of, 20, by and between Ben's Soft Pretzels LLC, an Indiana limited liability company, ("Sublessor"), and and (jointly and severally, and collectively, referred to as "Subtenant").
W I T N E S S E T H:
WHEREAS, Sublessor is the lessee under a certain lease dated, entered into with
for
approximately
square
feet
located
at
(the "Premises"), a copy of which is attached hereto as Exhibit
A and hereby made a part hereof (the "Lease"); and
WHEREAS, Sublessor's affiliate, Ben's Soft Pretzels Franchising Corporation, (as Franchisor)
and Subtenant (as Franchisee) have entered into a Ben's Soft Pretzels Franchise Agreement
dated for Franchise Number (the "Franchise Agreement") pursuant to which

Source: Item 22 — CONTRACTS (FDD pages 46–47)

What This Means (2025 FDD)

According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the Franchise Agreement between Ben's Soft Pretzels Franchising Corporation and the franchisee grants the franchisee the right to operate a Ben's Soft Pretzels store at a specific location. This right is subject to the terms and provisions outlined in the Franchise Agreement itself. The sublease agreement is contingent upon the franchisee's compliance with both the terms of the sublease, the overarching lease, and the Franchise Agreement.

The sublease explicitly states that the premises will be used solely for operating a Ben's Soft Pretzels store, and this operation must adhere to the terms and provisions of the Franchise Agreement. This ensures that the franchisee operates the business in accordance with the franchisor's standards and guidelines. The Franchise Agreement also mandates that the franchisee maintain insurance coverage as described in both the lease and the Franchise Agreement, further protecting the interests of the franchisor, sublessor, and lessor.

Furthermore, the Franchise Agreement includes non-compete covenants that the franchisee must adhere to, both during the term of the agreement and after its termination. Violation of these covenants could result in legal action, including injunctions, to protect the Ben's Soft Pretzels system. The franchisee's adherence to the Franchise Agreement is critical for maintaining the integrity of the brand and ensuring consistent operations across all franchised locations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.